Munich Re said it thinks regulators will give the insurance sector time to phase in new capital rules. But those who move more quickly are likely to be rewarded.

Underpromise and overdeliver has become an executive cliché. Unfortunately, it reached parts of the German life-insurance industry too late.

The sector is under pressure from ultralow interest rates and long-term promises made offering policyholders guaranteed rates of return. There are few long-term assets they can buy that will match these payout promises.